• EUR/AUD strengthened on Monday as euro was boosted by higher-than-forecast Spanish inflation data.
• Investors are set for a busy week, with euro zone inflation data and the Federal Reserve's latest decision due on Wednesday, the Bank of England and the ECB on Thursday, and U.S. employment data on Friday.
• Pair gained up to 1.5620 but further gains were limited as investors lacked conviction ahead of this week’s major events.
• From a technical viewpoint, RSI is strongly bullish at 42, daily momentum studies, 5, 10 and 21 are trending down.
• Immediate resistance is located at 1.5381 (38.2%fib), any close above will push the pair towards 1.4281(9DMA).
• Immediate support is seen at 1.5286 (23.6% fib) and break below could take the pair towards 1.5231 (Lower BB).
Recommendation: Good to buy on dips around 1.5380, with stop loss of 1.5490 and target price of 1.5300
